BLR FINAL

-________ are those with stock traded on a stock exchange and, therefor, are likely to have many shareholders a. publicly held corporations b. privately held corporations c. close corporations d. real corporations e. traded corporations

a

_________ occurs when someone is "forced" to sign a contract; that is, the contract is made because of a threat that gave no sensible way out: a. duress b. fraud c. discomfort d. misrepresentation e. non of the other choices are correct

a

a ___________ is one whose shares are held by one shareholder or a small group of shareholders a. close corporation b. small corporation c. limited corporation d. shared corporation e. nonprofit corporation

a

a contract is formed only when an offer is accepted: a. by the offeree b. by the offeror c. by the rules of the UCC d. by the promisor e. none of the other choices

a

a general partnership is a. an association of two or more persons to carry on a business as co owners for a profit b. an association of two or more companies that help each other with business but do not share profits c. an understanding between a supplier and a distributor d. a merger of two corporations e. none of the other choices are correct

a

a promise to do something or to refrain from doing some specific thing is a(n): a. offer b. suggestion c. legal promise d. bid e. proposal

a

a warranty may be generally defined as a statement a. of guarantee of payment by the seller b. of guarantee of payment by the buyer c. by the seller that its goods conform to certain quality, safety, performance, or title standards d. by the seller that its goods conform to buyers expectations e. by the buyer that it accepts responsibility for any harms it causes

a

acceptance is properly communicated: a. when it is sent by the offeree b. when it is received by the offeror c. when it is sent by the offeror d. any of the other specific choices are proper acceptances e. non of the other choices are correct

a

an effective revocation a. must be communicated to the offeree before acceptance b. must be communicated to the offeree after acceptance c. need not be communicated tot he offeree before acceptance d. must be filed through a court e. must be initiated by the offeree

a

coca cola, microsoft and general motors are all examples of a. corporations b. limited partnerships c. legal partnerships d. sole proprietorships e. none of the other choices are correct

a

dissolution of a corporation a. may be voluntary or involuntary b. is always voluntary c. is never voluntary d. cannot be voluntary is some states e. cannot be involuntary in some states

a

double taxation on profits is a. a disadvantage to the corporate form of organization b. an advantage to the corporate form of organization c. an incentive for governments to lower sales taxes for corporations d. a driving force behind the trend of businesses moving overseas e. a clever economic strategy

a

most states accept the UCC's provisions on most topics because a. the benefits of lowering the costs of doing business across state lines was so great b. the federal government gave them no choice c. the european union required consistency in the us sales law to encourage trade d. national unity is very important to all states e. there were alot of federal tax breaks associated with accepting the UCC

a

the UCC's artice 2 does not cover the sale of a. land b. furniture c. a load of corn d. a computer sold to a business e. a truck load of printer paper

a

the ______ evolved in commerce over the centuries a. law of contracts b. law of commerce c. law of trade d. law of documents e. law of freedom

a

under UCC article 2 terms regarding payment delivery and price are a. not necessarily necessary for the formation of a contract b. required for the formation of a contract c. not allowed in a formal contract d. not allowed in a casual contract e. necessary only when one of the parties is a minor

a

when a court holds shareholders personally liable for corporate debts it is said to be a. piercing the corporate veil b. opening the corporate veil c. closing the corporate veil d. tearing the corporate veil e. cutting the corporate veil

a

a person doing business for himself or herself is a a. single proprietor b. sole proprietor c. only proprietor d. partner e. general proprietor

b

directors are under a ___________ to conduct themselves on behalf of the corporation as a reasonably prudent person in the conduct of personal business affairs a. duty of reasonability b. duty of care c. duty of management d. duty of morality e. duty of profit

b

gary and sue start a consulting firm. they are co owners of it and have joint control over its operation and the right to share in its profits. their organization is most likely a a. proprietorship b. partnership c. business trust d. corporation e. syndicate

b

in a sole proprietorship, profits are taxed to the: a. corporate owner of the proprietorship b. individual owner of the proprietorship c. general partners d. state e. none of the other choices

b

the ________ controls the terms of the offer when a contract is made a. offeree b. offeror c. judge d. contractor e. unbiased third party

b

the subject matter of a sales contract is not considered a good under article 2 unless a. it is real and visible b. it is movable and tangible c. it is ephemeral and tangible d. it is diaphanous and movable e. it is movable and intangible

b

under the common law, an acceptance cannot deviate from the terms of the offer without being considered either a rejection or a counteroffer. under UCC article 2 a. an acceptance is not valid if the offerees acceptance contains different terms from those in the offer b. an acceptance is valid when the parties intend to form a contract--even though the offerees acceptance contains different terms from those in the offer c. an acceptance is only valid if it occurs in writing d. an acceptance is only valid if it is communicated verbally e. an acceptance is only valid if it is made within 3 months of the offer

b

when a party to a contract does not perform as required, there is a. a failure to perform b. a breach of contract c. a breach of trust d. a failure of contract e. a rescinding of the contract

b

withdrawal of an offer by the offeror is a: a. counteroffer b. revocation c. reinstitution d. reinstallation e. resection

b

The UCC's purpose is a. to give each state a unique set of trade laws b. to mediate international business disputes c. to simplify, clarify and modernize the law governing commercial transactions d. to reduce taxes e. to make it easier to prosecute parties who breach contracts

c

a buyer and a seller would like to enter into a contract for the sals of goods. in his offer the buyer does not specify a price. the seller agrees with the arrangement a. under article 2 there is a contract if the parties have done business before b. under the common law of contracts, but not the UCC, there is a contract because the parties intended to enter into a binding agreement even in the absence of the price term c. there is a contract under article 2 because it allows the parties to enter into a contract even though the price is to be determined later d. there is no contract under article 2 because "some of the offer's major terms were omitted or were simply left open for determination later" e. there can be no contract under article 2 or the common law when price is missing

c

a contract cannot be formed if _______ is lacking a. feeling b. friendship c. intent d. purpose e. meaning

c

a counteroffer __________ the original offer a. completes b. terminates c. enhances d. improves e. increases

c

a person doing business for herself is a __________-; the business is a _____________ a. partner; partnership b. general partner; limited partnership c. sole proprietor; proprietorship d. shareholder; corporation e. member; syndicate

c

a potential drawback of sole proprietorships and partnerships is that the parties involved have a. limited financial liability b. only corporate liability c. unlimited liability d. partial protection from creditors for business debts e. only corporate liability and partial protection from creditors for business debts

c

an offeror can ___________ an offer by withdrawing it a. finish b. complete c. terminate d. finalize e. validate

c

general partners in a limited partnership a. have no liability b. have limited liability c. are personally liable to the partnerships creditors d. are personally liable to the secretary of state e. are personally liable to the partnerships creditors only if they choose to be

c

jennifer enters into a contract when she is sixteen. when she reaches the age of majority she may manifest her intent to be bound to the contract; that is, to ___________ the contract: a. adjudicate b. exculpate c. ratify d. covenant e. assert

c

legally the board of directors is the ______________ of a corporation a. principle b. leader. c. principal d. judge e. owner

c

many states now allow groups of doctors in practice together to form a particular legal entity allowed by statute called a. a limited liability company b. a cooperative c. a professional corporation d. a limited partnership e. a physician association

c

the governing committee of a corporation is the a. board of presidents b. president c. board of directors d. board of shareholders e. board of managers

c

the legally binding agreement that is the essence of a contract is reached through a process of: a. offer and rejection b. offer and bargaining c. offer and acceptance d. acceptance and offer e. offer and compliance

c

the most common form of business organization is a. joint venture b. partnership c. proprietorship d. corporation e. none of the other choices

c

the rules that regulate and govern the internal operations of a corporation are known as a. the certificate of incorporation b. the bond c. the bylaws d. statutes of business e. the corporate constitution

c

under the common law, a contract cannot be formed until an offer is clearly accepted. under the UCC article 2 a. a contract "must be notarized" and must "show sufficient agreement" between the parties b. a contract "may be made only in the presence of a judge" c. a contract "may be made in any manner sufficient to show agreement" between the parties d.a contract cannot be formed until an offer is clearly accepted e. none of the other choices are correct

c

under the common law, contract modifications must be supported by new consideration to be binding on the parties. under article 2: a. parties can only modify existing sales contract in court b. parties may not add new consideration to an existing sales contract c. parties need not provide new consideration to modify an existing sales contract d. parties need to provide new consideration to modify an existing sales contract e. parties cannot modify an existing sales contract

c

under the ucc a buyers damages are to put the buyer in as good a position as if the seller had performed the contract. the buyer is allowed to seek incidental damages for recovery of those costs resulting from the breach. incidental damages include a. foreseeable, although not necessarily foreseen, damages that result from the seller's breach b. injuries to people or property that are (proximately) caused by the seller's breach of any warranty c. reasonable costs of inspecting, transporting, and caring for goods while in her possession d. all of the other choices e. none of the other choices

c

which form of business incurs double taxation a. limited partnerships b. LLC's c. corporations d. proprietorships e. general partnerships

c

with respect to transferability of ownership interests, a sole proprietor may a. not transfer her interests b. may only transfer her interest with approval of the state c. freely transfer her interests d. transfer her interests to family members only e. transfer her interests after paying a capital gains tax

c

__________ is an offeree's expression of assent or agreement to the terms of an offer a. agreement b. unilateral acknowledgement c. bilateral acknowledgement d. acceptance e. understanding

d

a limited liability company a. is taxed like a partnership b. has the liability of a corporation c. is taxed like a corporation d. is taxed like a partnership and has the liability of a corporation e. is taxed like a corporation and has the liability of a corporation

d

every state except _________ has adopted UCC article 2 a. texas b. illinois c. alabama d. louisiana e. florida

d

shareholders, the board of directors and the managers are the three major groups that make up a. a limited partnership b. a sole proprietorship c. a joint partnership d. a corporation e. a nonprofit organization

d

some contracts must be in writing and signed to be enforceable. contracts that are covered by the statute of frauds include a. contracts for the sale of land b. promises to pay the debt of another c. ontracts that take more than a year to perform d. all of the specific choices are included e. none of the other choices

d

the UCC defines good faith dealings as a. the ordinary standards of the industry b. the standards set by the domestic corruption practices act c. fiduciary obligations among parties involved d. honest in fact in the conduct or transaction incurred e. none of the other choices

d

when a seller fails to deliver goods, either by being too late to be useful or because the goods are nonconforming the buyer is entitled a. to nothing b. to compensatory payment of 1000 c. to buy substitute goods and recover the price difference d. to require the seller to find deliver new goods e. to sue for breach of confidentiality

d

when someone accepts an offer by an exchange of mutual promises, what kind of contract has been formed? a. implied b. unilateral c. executed d. bilateral e. commercial

d

which of the following have unlimited liability for debts of their business a. limited partners b. general partners c. sole proprietors d. general partners and sole proprietors e. general partners, limited partners, and sole proprietors

d

a ____________ contract is one that is accepted by performance a. bilateral b. nonbinding c. real d. performance e. none of the other choices are correct

e

a person can disaffirm a contract if it was agreed due to a. fraud b. misrepresentation c. duress d. undue influence e. all of the other choices

e

according to the UCC statute of frauds all: a. contracts involving the sale of land must be in writing b. sales of goods worth more than 500 must be in writing c. warranties must be in writing d. material terms must be included in written contracts e. all of the other choices

e

article 2 of the UCC covers the sale of a. the copyright on a book b. business services c. investment securities d. commercial real estate e. none of the other choices

e

contracts under article 2 of the UCC could include a. a house b. a patent c. a bank account d. an insurance policy e. none of the other choices

e

generally a minor cannot disaffirm which contract? a. for an educational loan b. for insurance c. for a bank account d. for enlisting in the army e. none of the other choices may be disaffirmed

e

if parties to a contract involving a sale of goods fail to specify price, and if there is dispute, so that a court must determine the price, under the UCC the price will be a. a reasonable price b. the price that the plaintiff specifies c. the price that the defendant specifies d. the price that a court appointed arbitrator specifies e. the market price of the closest substitute of good

e

in a limited partnership the -_________ are investors who may not participate in managing the business a. restricted partners b. general partners c. investment partners d. nonvoting partners e. none of the other choices are correct

e

the UCC's remedies for breaches of contract for the sale of goods are intended to a. place the breaching party in the same position as if the contract had been performed according to its terms b. degrade the position of the breaching party c. place both parties in the same position as if the contract had been performed according to its terms d. improve the position of the nonbreaching party beyond what it would have been if the contract had been performed according to its terms e. none of the other choices are correct

e

the dissolution of a partnership may occur a. if a partner is found to be bankrupt b. if the business of the partnership is made unlawful c. if a partner dies d. if a partner is found to be bankrupt or if a partner dies e. if a partner is found to be bankrupt or if a partner dies or if the business of the partnership is made unlawful

e

under the UCC, a merchant is not the one who a. uses an agent who holds herself out as having special knowledge about the goods sold b. presents himself as having skill specialized in the transactions c. regularly deals in goods of the kind involved in transactions d. has business expertise used in transactions involving particular goods e. all of the other choices are merchants under the UCC

e

unless otherwise stated by contract, the law of partnership presumes which of the following not to be true? a. each partner has an equal voice in partnership management b. a majority vote controls ordinary business decisions c. profits are to be divided among the partners d. regardless of the amount invested in the partnership, each partner has an equal vote e. all of the other choices are true

e

which of the following are usually included in a written partnership agreement a. name of the partnership b. the allocation of ownership shares c. accounting rules d. voting rights of the partners e. all of the other specific choices are usually included

e

which of the following is usually included in the articles of incorporation a. name and address of the corporation b. name and address of the corporations registered agent c. purpose of the business d. names and addresses of the incorporators e. all of the other specific choices are correct

e